There was a recent comment on the blog regarding the monetization of new media. Making money from your new media is certainly a good topic for discussion, but I am wary of it for a number of reasons.
Too often, the person asking the question is not asking how to make money in new media, they are asking “How do I get rich in new media…TODAY!”
The fact is, the market is much too immature to fuel get rich quick schemes and instead requires someone be in for the long term rewards that it will bring. To discuss how to make money on a project that doesn’t exist a truly putting the cart before the horse.
Here is the value I see in new media in the order I consider most likely.
1. New media project as PR and marketing for those involved.
Marketing and PR provide very important value as without the attention of an audience and the market there is little chance of making any money. I believe attention comes first and only then money.
2. Advertising and sponsorship
As your attention and audience grow, you will have opportunities to sell advertising on your show. The nature of the market means that this will likely be much less than is typical for traditional media, but I see these earnings rising rapidly as the power of the new media market starts to come into its own. Sponsorship models hold more interest for me as they are relatively easier to sell and service, especially for smaller viewership shows.
3. Distribution deals with the new media wings of traditional media companies, such as the one recently signed between Rocketboom and Sony.
4. Sale of a new media property into the traditional media market
While this might prove the most lucrative, I would consider it the least likely. It also can mean the loss of control over your property. I also wonder if the traditional market is the place for shows with such marked differences in sensibilities.
Finally, the new media market is in it’s infancy and will probably develop money-making models we have not even considered.